Leicester City chief executive says financial rule changes should benefit club after compliance assurance | OneFootball

Leicester City chief executive Kevin Davies says the club has complied with the EFL’s 2025/26 financial rules and that summer changes should be positive. According to LeicesterMercury.co.uk, he set out the position amid scrutiny of the club’s finances.

Leicester were docked six points in February for breaching profit and sustainability rules linked to their 2023/24 promotion, a penalty that condemned them to relegation from the Championship.

The club have posted losses of £270 million across the last four accounting years and have already cashed in future parachute payments. In January they borrowed from Australian bank Macquarie, secured against Premier League income yet to be received.

These issues were discussed with the Fan Advisory Board, whose representatives said Davies assured them the club will be FFP and PSR compliant this season. They said changes across the leagues ought to help Leicester, and called for a reset while pledging to represent men’s and women’s teams.

Championship clubs have voted to replace profit and sustainability with a squad cost ratio, allowing up to 85 per cent of revenue on wages and transfer fees. In League One the limit is 50 per cent, and Leicester’s commercial income is expected to exceed most rivals.

Football finance analyst Kieran Maguire said on the Price of Football podcast that League One figures fear an effective wage cap and a growing cliff edge between divisions. He also asked whether the change could create a yo-yo effect between the Championship and League One.

Source: LeicesterMercury.co.uk